Kapuskasing Finalizes Agreement to Acquire Previous Producing Daniels Harbour “Mississippi Valley Type” Zinc Property in Newfoundland and Plans Geophysical Program
KAPUSKASING GOLD CORP.
133 Richmond Street West, Suite 501, Toronto, ON M5H 2L3 Canada TSXV: KAP
Kapuskasing Finalizes Agreement to Acquire Previous Producing Daniels
Harbour “Mississippi Valley Type” Zinc Property in Newfoundland and
Plans Geophysical Program
September 14, 2017 – Kapuskasing Gold Corp. (TSX-V: KAP) (the “Company” or “KAP”) announces that
it has executed and finalized, subject to TSX Venture Exchange approval, the formal option agreement (the
Agreement) to earn a 100% interest in t he Daniels Harbour Zinc Property located on the Great Northern
Peninsula of Newfoundland, approximately 10 km’s north east of the community of Daniels Harbour.
Pursuant to the Agreement, KAP may earn a 100% interest in the Daniels Harbour Property for total
consideration of 1,750,000 shares, $60,000 in cash payments and a work commitment of $100,000 within
the 24 months following TSX-V approval . The Vendor shall retain a 3% net smelter royalty ( “NSR”)
interest. The Company retains the option to buy back 2% of the NSR for $ 2,000,000. In the event KAP
delineates a 43-101 compliant resource of 5,000,000 tonnes of ore grade zinc (Grade of at least 7% Zn), the
vendor will receive a one -time bonus payment equating to CDN$50,000 payable in cash or shares at the
election of KAP on the day of which said report is filed on SEDAR.
About Daniels Harbour
The Property consists of 42 claims (1,050 hectares) and has been explored and developed by one owner
(Teck) since zinc mineralization (Mississippi Valley Type (“MVT”) carbonates ) were discovered. T eck
Explorations (operating as Newfoundland Zinc Mining Limited) mined approximately 7 million tonnes
averaging 7.8% zinc from the Daniels Harbour mine between 1975 and 1990. More recently, Altius
Minerals Corporation has acquired a significant land posit ion in the immediate area, contiguous and
surrounding the Daniels Harbour Zinc Property.
Mineralization in the Daniels Harbour zinc deposits occurs in generally long, narrow, NE-trending bodies,
parallel to the long axes of dolomite breccia piles and to normal faults. In the mine area, a total of 21 ‘zones’
named alphabetically ‘A’ to ‘W’ were recognized . The largest of these was the L Zone ore body, which
consisted of at least three parallel bodies ranging in width from 25 to 80 feet separated by narrow areas of
low grade mineralization. The L Zone extends over a length of 10,000 feet. The maximum vertical thickness
of ore is approximately 100 feet. The majority of the tonnage mined at Daniels Harbour was sourced from
this one zone.
Two types of zinc mineralization are recognized in the L Zone. The first and most common type occurs as
cavity fillings in a series of narrow (0.5 to 5 ft.) pseudobreccia beds separated by barren massive ‘Grey
Dolomite’. Ore contacts are sharp both laterally and vertically, and the grade may change from traces to
30% zinc within a few feet. The second type of mineralization, which is prevalent in the thickest portion of
the L Zone, consists of veins, which cut the sequence of pseudobreccia beds at various angles. The
pseudobreccia beds may be barren or mineralized for a distance of 5 to 10 feet from the veins. The sulphide
mineralization consists almost entirely of sphalerite, with local minor quantities of pyrite, marcasite and
extremely rare galena. The sphalerite is exceptionally pure and iron deficient. Impurities include only 1.3%
iron and 0.18% cadmium. This purity and simple mineralogy enables good recovery (98%) and production
KAPUSKASING GOLD CORP.
133 Richmond Street West, Suite 501, Toronto, ON M5H 2L3 Canada TSXV: KAP
of premium grade concentrate (63%). Supergene alteration is minor, and is limited to the top 20 fe et of
bedrock; it consists of secondary hematite, limonite and thin films of smithsonite on fractures.
Individual MVT deposits are generally less than 2 million tonnes, are zinc -dominant, and possess grades
that rarely exceed 10% (Pb+Zn). The deposits do, however, characteristically occur in clusters, referred to
as ‘districts’. The Daniels Harbour Property is prospective for further discoveries of MVT sulphide zinc
deposits. There remains potential in the area of the old mine workings of the historic ore bodies continuing
at depth or along the favourable breccia horizon.
The Company is consulting with a geophysical consultant to determine the most effective geophysical
program to be completed immediately, providing additional potential zinc targets for diamond drilling.
Mr. Garry Clark, P.Geo, (Exploration Manager and a director of the Company) a Qualified Person ("QP")
as defined by National Instrument 43-101, has reviewed the technical content of this release. The content
of the geological data presented has been derived from the Provincial Mineral Deposit Database and
exploration assessment files and are believed to be accurate and correct.
On behalf of the Board of Directors
Kapuskasing Gold Corp.
Jonathan Armes
President & CEO
Phone 1 (416) 708-0243
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this press release.
This press release contains forward -looking statements within the meaning of applicable Canadian and U.S. securities laws and
regulations, including statements regarding the future activities of the Company. Forward looking statements reflect the cu rrent
beliefs and expectations of management and are identified by the use of words including “will”, “anticipates”, “expected to”,
“plans”, “planned” and other similar words. Actual results may differ significantly. The achievement of the results expressed in
forward-looking statements is subject to a number of risks, including those described in the Company’s management discussion
and analysis as filed with the Canadian securities regulatory authorities which are available at www.sedar.com. Investors a re
cautioned not to place undue reliance upon forward-looking statements.